Defence Acquisition Council

Defence Acquisition Council

• The Defence Acquisition Council is the highest decision-making bodyin the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
• The Minister of Defenceis the Chairman of the Council.
• It was formed, after the Group of Ministers recommendations on ‘Reforming the National Security System’, in 2001, post Kargil War (1999).

Objective Of DAC (Defence Acquisition Council)

• To counter corruption and speed up decision making in military procurement.

• The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought, and time frame prescribed, by optimally utilizing the allocated budgetary resources.

Composition of Defence Acquisition Council

The composition of the DAC is as follows:

1. 1. Defence Minister: Chairman
   2. Minister of State for Defence: Member
   3. Chief of Army Staff: Member
   4. Chief of Naval Staff: Member
   5. Chief of Air Staff: Member
   6. Defence Secretary: Member
   7. Secretary Defence Research & Development: Member
   8. Secretary Defence Production: Member
   9. Chief of Integrated Staff Committees HQ IDS: Member
   10. Director General (Acquisition): Member
   11. Dy. Chief of Integrated Defence: Staff Member Secretary

Functions of DAC (Defence Acquisition Council)

• It approves the long-term integrated perspective plan for the forces, accords acceptance of necessity (AON) to begin acquisition proposals, and grant’s its approval to all major deals through all their important phases.
• It also has the power to approve any deviations in an acquisition, and recommends all big capital defence purchases for approval of the Cabinet committee on security (CCS) headed by Prime Minister.
• The DAC is responsible to give policy guidelines to acquisitions, based on long-term procurement plans.
• It also clears all acquisitions, which includes both imported and those produced indigenously or under a foreign license.

The functions of the DAC include:

• • in-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces;
  • accord of Acceptance of Necessity to acquisition proposals;
  • categorization of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’;
  • issues relating to Single vendor clearance;
  • decision regarding ‘offset’ provisions in respect of acquisition proposals above Rs. 300 crores;
  • decisions regarding Transfer of Technology under ‘Buy & Make’ category of acquisition proposals; and
  • Field Trial evaluation.

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